Bitcoin has made an impressive recovery since the big crash last month, further cementing its status as a safe haven asset in times of adversity.
BTC has returned to price levels it held at the beginning of this year, which cannot be said for traditional assets such as stocks.
On January 1, Bitcoin traded at just below US$7,200 [AU$11,748], which is pretty much where it is at the time of writing. Following a huge dump in mid-March, it has managed to regain around 60% to current levels.
Gold is trading higher than it was at the beginning of the year, confirming what we already know that it is the world’s go-to safe haven.
Industry analyst Willy Woo has been delving into the charts and comparing Bitcoin value growth versus other assets. The charts are plotted logarithmically over the past decade and clearly show which asset has performed the best.
And they told me Bitcoin was a risky volatile asset…
(Plotted in log charts so % gains/losses are proportional within each respective sparkline) pic.twitter.com/qxC1xF8cay
— Willy Woo (@woonomic) April 7, 2020
Both the S&P500 and real estate have dumped this year as the COVID-19 pandemic continues to batter global economies.
Woo added that BTC is exhibiting safe haven properties due to the nuances of its production costs, creating a floor in price.
It is also partly due to Bitcoin getting an uplift in price due to its adoption s-curve while other assets are at adoption saturation.
The status may be cemented even further later this year in a post-halving bull run as economies slowly get back to normal.